Legislature(2005 - 2006)BELTZ 211

04/22/2005 01:30 PM Senate COMMUNITY & REGIONAL AFFAIRS


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 184 MUNICIPAL FIREARM ORDINANCES TELECONFERENCED
Moved HB 184 am Out of Committee
Bills Previously Heard/Scheduled
= HB 229 REINSTATEMENT OF NATIVE CORPORATIONS
Moved HB 229 Out of Committee
= SB 171 NPR-A COMMUNITY GRANT PROGRAM
Moved SB 171 Out of Committee
= SB 179 MINERALS TAX/PAYMENTS TO MUNIS IN LIEU
Heard & Held
              SB 171-NPR-A COMMUNITY GRANT PROGRAM                                                                          
                                                                                                                              
                                                                                                                                
CHAIR GARY STEVENS announced SB 179 to be up for consideration.                                                                 
                                                                                                                                
1:33:06 PM                                                                                                                    
                                                                                                                                
SENATOR  GARY  WILKEN, Sponsor,  distributed  a  map to  indicate                                                               
community  proximity  to  oil  &  gas  drilling  and  exploration                                                               
activity in the National Petroleum Reserve - Alaska.                                                                            
                                                                                                                                
With  regard to  Ms.  Burke's earlier  challenge questioning  the                                                               
authority and  latitude of the  Legislature to analyze,  rank and                                                               
fund grants  to communities, he  said the  bill is on  course and                                                               
does  just  what Judge  Carpeneti  told  the Legislature  to  do.                                                               
[Susan  Burke  testimony, 4/22/05  SCRA  hearing  on SB  171]  He                                                               
acknowledged she had  several good suggestions and  they would be                                                               
incorporated in the Finance Committee.                                                                                          
                                                                                                                                
He  asked the  committee  to  pass the  bill  on  to the  Finance                                                               
Committee where it is already scheduled pending referral.                                                                       
                                                                                                                                
CHAIR GARY STEVENS noted the bill has two fiscal notes.                                                                         
                                                                                                                                
1:36:23 PM                                                                                                                    
                                                                                                                                
SENATOR DONNY OLSON said his  district includes the NPR-A and his                                                               
perspective is different than the  sponsor's. Because a number of                                                               
legal  questions  were raised  during  the  previous hearing,  he                                                               
asked  the committee  to  take  no action  until  it receives  an                                                               
opinion from  the attorney  general. It makes  sense to  wait and                                                               
get detailed  answers to  some of the  legal questions  that were                                                               
raised because the issue has  a history of legal questions. Also,                                                               
it's important to  wait and hear about the impacts  to the people                                                               
that are  living in  the communities. That's  difficult to  do on                                                               
short notice when the whaling/subsistence time is near.                                                                         
                                                                                                                                
He pointed out that in the  past, the people from the North Slope                                                               
have partnered with  the State of Alaska and  the successful vote                                                               
on ANWAR  bears witness to  that. He suggested  that relationship                                                               
would  be strained  if the  Legislature were  to meddle  with the                                                               
impact money that  goes to these communities. He  noted there was                                                               
already  one lawsuit  challenging the  impacts to  the area  that                                                               
went in favor of the plaintiffs.                                                                                                
                                                                                                                                
Impact  means  different  things  to different  people  and  it's                                                               
shortsighted to  simply look at  well locations to  determine the                                                               
impact  on the  North  Slope  and in  the  NPR-A. He  distributed                                                               
several  maps  of  the  area  showing  that  active,  trial,  and                                                               
abandoned oil and gas wells  are located throughout the NPR-A and                                                               
seismic activity  crisscross the  entire region.  Certainly these                                                               
maps indicate impact to the land  and to the animals that live on                                                               
the land, he said.                                                                                                              
                                                                                                                                
A  map showing  current  and  proposed oil  and  gas lease  areas                                                               
indicates that  leases are  reaching farther  to the  west, which                                                               
makes  it clear  that  the  impact isn't  in  just the  northeast                                                               
corner. The impact is spread  throughout the NPR-A area. Although                                                               
rivers and streams  aren't shown, he estimated that  at least 100                                                               
fish and caribou  camps operate in the area  and seismic activity                                                               
would definitely impact the people and animals in the area.                                                                     
                                                                                                                                
Noting  that  the  sponsor  had already  scheduled  the  bill  in                                                               
another committee, he asked members  to recognize the people that                                                               
are impacted and  to wait to hear from them  before taking action                                                               
on the bill.                                                                                                                    
                                                                                                                                
1:45:45 PM                                                                                                                    
                                                                                                                                
SENATOR  THOMAS WAGONER  said he  would  like to  hear about  the                                                               
positive impacts.                                                                                                               
                                                                                                                                
SENATOR OLSON  said he  didn't want to  give the  impression that                                                               
all the  impact is  negative. As the  sponsor pointed  out, there                                                               
are  more positive  impacts to  the  activity in  the NPR-A  than                                                               
negative. People going  up to the NPR-A do business  when they go                                                               
through  Fairbanks  and as  a  result,  there  are more  jobs  in                                                               
Fairbanks.                                                                                                                      
                                                                                                                                
1:47:08 PM                                                                                                                    
                                                                                                                                
SENATOR BERT  STEDMAN asked if  the residents in the  area derive                                                               
benefit from the activity in the  NPR-A in terms of improved jobs                                                               
and better lifestyles.                                                                                                          
                                                                                                                                
SENATOR OLSON  said he doesn't know  if there are more  jobs, but                                                               
speaking as a physician, the  lifestyle of Native and non-Natives                                                               
in the area has improved.                                                                                                       
                                                                                                                                
The sponsor  questioned the  merit of using  funds for  the small                                                               
boat launch ramp in Wainwright, but  it does make sense, he said.                                                               
As seismic  activity increases and  the caribou are  driven away,                                                               
the  area  residents   need  to  venture  farther   up  river  to                                                               
subsistence  hunt.  That's  why   the  launch  ramp  facility  is                                                               
reasonable  even  though  it's  a   long  way  from  the  closest                                                               
community.                                                                                                                      
                                                                                                                                
SENATOR WAGONER suggested the new  type of seismic activity might                                                               
not affect calving season as much as it has in the past.                                                                        
                                                                                                                                
SENATOR OLSON reiterated  it's a good idea to wait  and hear from                                                               
area residents.                                                                                                                 
                                                                                                                                
1:52:03 PM                                                                                                                    
                                                                                                                                
KATHY ASHBY,  City Administrator, City of  Nuiqsut, reported that                                                               
the council members were sending  a letter. She applauded Senator                                                               
Olson for  taking such a strong  and loyal stand for  people from                                                               
the  North  Slope  Borough  and for  understanding  many  of  the                                                               
impacts.                                                                                                                        
                                                                                                                                
She  remarked that  it's ironic  how very  well informed  Nuiqsut                                                               
people  are if  they want  to be.  Industry has  meetings in  the                                                               
community on  a regular basis  to explain  what and how  they are                                                               
doing.  Residents are  very involved  and frequently  voice their                                                               
opinions regarding how they will be impacted.                                                                                   
                                                                                                                                
Although  some argue  that the  bill  opens NPR-A  funds so  that                                                               
people that  don't live in the  NPR-A can apply for  them, that's                                                               
already being  done, she  said. The  North Slope  Borough applies                                                               
for funds on behalf of villages not all of which are in NPR-A.                                                                  
                                                                                                                                
As   a   city  administrator   with   a   background  in   public                                                               
administration,  her  personal  contention is  with  the  runaway                                                               
engine  that   DCCED  has  in  administering   grant  funds.  Her                                                               
interpretation  of federal  law  and state  statute  is that  the                                                               
compact is for DCCED to  administer funds to impacted communities                                                               
on behalf of NPR-A. What has  happened in Nuiqsut is anything but                                                               
that.  She likened  the community  to  a stepchild  to the  North                                                               
Slope Borough. She said "It would  take me days to compile all of                                                               
the grants  that have been taken  away from it and  been given to                                                               
the North Slope  Borough." If Nuiqsut realized  anything that was                                                               
instructive or  contributed to  local self-sufficiency  or strong                                                               
local  government,  one  might   remain  silent  with  the  award                                                               
process. However,  that process  seems to  have been  onerous and                                                               
heavy handed.                                                                                                                   
                                                                                                                                
CHAIR GARY  STEVENS asked her  to make certain her  comments were                                                               
directed to the bill under consideration.                                                                                       
                                                                                                                                
MS. ASHBY  said the bill  would take  the authority to  grant the                                                               
NPR-A  awards  from  DCCED.  Another   review  process  would  be                                                               
established  with   a  six  member  committee   and  the  finance                                                               
committees  would  make the  final  award.  She lauds  that  idea                                                               
because, in  her opinion, DCCED  isn't doing a credible  job. The                                                               
current grant  process won't  stand the  light of  day if  a good                                                               
audit were conducted.                                                                                                           
                                                                                                                                
She  applauded  Senator  Wilken for  introducing  the  bill,  but                                                               
cautioned against going too far.                                                                                                
                                                                                                                                
1:59:17 PM                                                                                                                    
                                                                                                                                
SENATOR WAGONER  noted there was  a transportation  proposal last                                                               
year  to  build a  bridge  and  he  was  curious where  that  was                                                               
located.                                                                                                                        
                                                                                                                                
SENATOR OLSON told  him it would cross the  Coleville River south                                                               
of Nuiqsut.                                                                                                                     
                                                                                                                                
2:00:22 PM                                                                                                                    
                                                                                                                                
CHAIR  GARY STEVENS  referenced  page 3,  lines  19-21 and  asked                                                               
Senator   Wilken   for   clarification  regarding   whether   the                                                               
recommendations had gone through the full legislative process.                                                                  
                                                                                                                                
SENATOR WILKEN acknowledged it  might need further clarification.                                                               
The  intent and  the way  the system  works is  that the  special                                                               
committee recommendations will go  to the full Finance Committees                                                               
and be incorporated into the capital budget.                                                                                    
                                                                                                                                
SENATOR WAGONER  asked what  the procedure would  be if  the bill                                                               
moves to  finance. With regard  to Senator Olson's  suggestion he                                                               
noted  that during  the  interim, hearings  pertaining  to SB  85                                                               
would be  held on the  North Slope.  Dealing with the  two issues                                                               
during the same timeframe might be advantageous.                                                                                
                                                                                                                                
SENATOR WILKEN said  his intention is to get the  bill to finance                                                               
where he  will make a  presentation and get input.  Decisions are                                                               
required  regarding what  the Legislature  wants to  do with  the                                                               
existing  $24 million  in grants,  he said.  He didn't  intend to                                                               
move the bill out of finance this year.                                                                                         
                                                                                                                                
2:05:30 PM                                                                                                                    
                                                                                                                                
SENATOR WAGONER  motioned to  report SB  171 and  attached fiscal                                                               
notes  from  committee  with  individual  recommendations.  There                                                               
being no objection, it was so ordered.                                                                                          
                                                                                                                                
CHAIR  GARY STEVENS  said he  had been  asked to  do a  roll call                                                               
vote. The  motion carried 3  to 0 with Senators  Stedman, Wagoner                                                               
and Chair Gary Stevens voting yea.                                                                                              

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